قالب وردپرس درنا توس
Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Why Tesla Stocks Jump (Again)

Why Tesla Stocks Jump (Again)



What happened

Shares of an electric car company Tesla (NASDAQ: TSLA) jumped 9.5% on Friday. Stock gains followed by an even bigger gain on Thursday. The stock rose nearly 29% in two days.

Stock optimism over the last two days follows the company's surprising third-quarter earnings. The company's bottom line and free cash flow were also much better than expected during the period.

The gain on Friday, in particular, may be due in part to the news that several bearish Tesla analysts have raised their stock price targets, as well as continuing the short press as short sellers cover their short positions.

  Model 3 interior

Image source: Tesla.

So what was Tesla's

revenue for the third quarter in line with analysts' estimates. But non-GAAP (adjusted) earnings per share reached $ 1

.86 – well ahead of analysts' average forecast for non-GAAP earnings per share of $ 0.42. He also reiterated that he believed his business was scaled to the point of self-financing.

After the surprising profit, some of Tesla's lowest stock price analysts withdrew their prospects. Barclay analyst Brian Johnson increased his goal from $ 150 to $ 200; Credit Suisse analyst Dan Levy raised his target from $ 189 to $ 200; and JPMorgan analyst Ryan Brinkman raised their target from $ 200 to $ 220. Their price targets, of course, still suggest that they are deviating from the current share price of $ 328. But the improved outlook for bear cubs may have frightened some short sellers and prompted them to cover their positions.

Now what

Tesla will need to do well for its important holiday district for the time being. In order for the company to reach its guidance of delivering 360,000 or more deliveries in 2019, the automaker will need to deliver about 105,000 vehicles during the period. This will be a quarterly record for the company.

Next, Tesla will have to prove that it can remain profitable and truly be able to finance its business.


Source link